Finishing your basement is a great idea for the following three reasons:
1. It provides you with more space!
2. You can finish your basement to meet your needs and wants (home theaters, craft rooms, workshops etc. without taking up bedroom or other living spaces.)
3. Increases the value and appeal of your home for increased resale value.
As you can see, finishing your basement is great. So, take a look at your options. You can have a contractor come in and sub it out and finish it that way. You can purchase a basement finishing system, and finish it that way. You can play contractor and sub out the jobs, buy the materials etc. Or, you can finish it yourself, although this is not a great idea unless you have some experience as a carpenter, or know someone that does that is willing to help you out.

Before contracting with a basement package installer, contractor, or going out and buying all the materials and finishing it yourself, do the following three things:
1. Get the basement inspected for structural soundness and moisture problems. You do not want to put thousands of dollars into finishing it if it is not sound, or if your hard work is bound to be ruined by mold and moisture damage.
2. If problems are discovered, get them fixed. It is either that, or ignore the problem and fix it later, and spend more then to do so.
3. Determine which option of the above options you are using (you do it yourself, hire someone, buy a package, etc.). If you purchase a basement finishing system package, you will need to determine what might not be covered by the specific installer's package - possibly HVAC, plumbing, windows - and then determine who will coordinate that work and assume the associated costs.

Once you have done these three things, you can move forward and sign a contract with an installer, a contractor, several subs, etc. You will want to approve detailed plans, and check them very carefully so that you know exactly what you are getting.

If you hire an installer to put in a basement finishing system they should follow these steps:
1. Obtain the building permit.
2. Lay out wall framing.
3. Construct soffits for low spots around beams and ductwork.
4. Install baseboard and casing around windows, doors, and ceiling.
5. Attach panel framework and ceiling grids, electrical, and mechanicals.
6. Install wall panels and ceiling tiles, etc.

If you hire a contractor they should do the following:
1. Obtain building permits
2. Sub out work
3. Review a schedule with you
4. Frame in walls
5. Build in walls, soffits, window casings, etc.
6. Finish work

Because a basement can be a difficult environment to finish due to the fact that the space is typically colder and more humid than above-ground space, finishing a basement with traditional building materials presents the risk of encouraging mold, mildew, water damage, or warping. So, if you choose to finish your basement in the traditional manner rather than using a basement finishing system, than make sure that you talk to your contractor about such problems. Often they may suggest a vapor barrier be installed before hanging wallboard. However, this can cause more harm than good because it traps moisture in the walls, so ask about other options. Your needs will vary depending on what region of the country you live in, but despite the drawbacks, finishing your basement is a great idea, and you won't regret the work it takes to make your basement into a livable and enjoyable space.